The Dallas-Fort Worth commercial real estate market is off to a strong start in 2015, across all sectors. The region continues to benefit from strong job and population growth, solid market fundamentals, and a diverse economic base. Here we look at the top five office, industrial, and retail leases of the past three months, with data provided by Xceligent Inc.
“You cannot hide the fact that more than 300 people are moving here each day. There are more large companies looking at relocations or consolidations in this area than ever before.”
— GREG LANGSTON, Principal and Managing Director, Avison Young
“Expanding tenants willcontinue to absorb space,and corporations will continue to evaluate and choose North Texas as a top relocation region for their real estate needs. Let the good times roll.”
— BOB BUELL, Principal, Fults Commercial Real Estate
“Current deal activity suggests that 2015 will be as strong as recent years. But speculative development won’t continue at the same pace, until the latest wave of new product hits the market and leases up.”
— TONY CREME, Vice President, Hillwood
“Retail space continues to remain tight with little vacancy. Retailers are laying out smaller stores in order to reach their customers and to help reduce occupancy and overhead costs.”
— DAWN GREINER, Senior Vice President, SRS Real Estate Partners
LARGEST OFFICE LEASES
1. GE CAPITAL
SIZE: 148,000 s.f. in Riverside Commons at 5000 Riverside Drive in Irving
TENANT REPS: Matt Heidelbaugh and Cribb Altman of Cushman & Wakefield
LANDLORD: Brookfield, represented by Johnny Johnson and Trey Smith with DTZ
DETAILS: The financial services firm is consolidating two Irving offices into space at Riverside Commons that was previously occupied by BlackBerry.
2. NEC NORTH AMERICA
SIZE: 119,611 s.f. at Royal Ridge V at 3929 W. John Carpenter Fwy. in Irving
TENANT REPS: Mike Wyatt and Bill McClung of Cushman & Wakefield
LANDLORD: Signature Office REIT Inc., represented by Nathan Durham and Fletcher Cordell of Transwestern
DETAILS: The tech company will move its U.S. headquarters to Royal Ridge V in December, keeping its operations within Irving.
3. SOUTHWEST AIRLINES
SIZE: 104,528 in Trinity Towers at 2777 N. Stemmons Fwy. in Dallas
TENANT REPS: Doug Carignan and Larry Toon of JLL
LANDLORD: GE Capital, represented by Chuck Sellers and Lauren Perry of Peloton Commercial Real Estate
DETAILS: This was a new lease for the property, following GE Capital’s $5 million renovation, which included elevator upgrades and a new fitness center and conference center.
4. GRAY REED & MCGRAW PC
SIZE: 58,000 s.f. in Thanksgiving Tower at 1401 Elm Street in Dallas
TENANT REP: Sanders Thompson with Transwestern
LEASING AGENT: Woods Capital, represented by Jon Altschuler, Sam Meginnis, and Mike Dement of Altshuler & Co.
DETAILS: The law firm is the largest of several tenants that recently renewed space in the 50-story downtown tower.
5. CEC ENTERTAINMENT INC.
SIZE: 55,257 s.f. in Westway One at 1707 Market Place Blvd. in Irving
TENANT REPS: Carl Ewert and Elysia Ragusa of JLL
LANDLORD: 1707 Market Place Boulevard Irving LLC, represented by Kurt Cherry, Brittany Ricketts, and Shea Byers with PM Realty Group
LARGEST INDUSTRIAL LEASES
1. FERRARA CANDY CO.
SIZE: 1.1 million s.f. in Grand Lakes II in Grand Prairie
TENANT REPS: Matt Mulvihill and Nathan Lawrence with CBRE
LANDLORD: Duke Realty Corp., represented in-house by Randy Wood
DETAILS: The company, which makes, repackages, and sells a wide variety of candy, opted to ink a long-term renewal at its current home.
2. MI WINDOWS AND DOORS
SIZE: 401,600 s.f. in DFW Airport North Distribution Center at 1900 Lakeside Drive in Flower Mound
TENANT REPS: Blake Kendrick and Luke Davis of Stream Realty Partners
LANDLORD: Huntington Industrial Partners, represented by Cannon Green of Stream
DETAILS: The company will take full occupancy of the building once construction is complete this summer.
SIZE: 337,500 s.f. at 730 E. Trinity Blvd. in Grand Prairie
TENANT REP: Tom McCarthy with JLL
LANDLORD: Prologis, represented by Steve Berger and Steve Koldyke with CBRE
DETAILS: The logistics company has signed on for more than half of this 588,364 s.f. building in the Great Southwest submarket.
4. GENCO I INC.
SIZE: 324,984 s.f. in Commerce 20 at 4951 Langdon Road in Dallas
TENANT REPS: Mark Collins and Dean Collins with Cushman & Wakefield of Texas Inc. and Brian Zurawski with Summit Realty Group
LANDLORD: Hillwood, represented inhouse by Toby Rogers and Bates Arnot, along with Dave Anderson of CBRE
DETAILS: The logistics provider leased about half of this 651,400 s.f. building near Interstate 20 and Bonnie View Road.
5. KUEHNE & NAGEL INC.
SIZE: 268,000 s.f. in Waters Ridge I in Lewisville
TENANT REPS: Blake Anderson and David Eseke with DTZ
LEASING AGENT: Steve Trese, CBRE
DETAILS: This 120-year-old company has evolved from a traditional freight forwarder to a global provider of fully integrated supply-chain solutions.
LARGEST RETAIL LEASES
1. KROGER MARKETPLACE
SIZE: 123,000 s.f. at Castle Hills Marketplace in Lewisville
DEVELOPER: Cencor Realty Services
LEASING AGENT: Michelle Caplan and Steve Gray of The Weitzman Group
DETAILS: Kroger continues its North Texas expansion with a new store that will anchor what’s ultimately planned to be a 400,000 s.f. retail center along State Highway 121 at Josey Lane.
2. NEIMAN MARCUS
SIZE: 90,000 s.f. at The Shops at Clearfork in Fort Worth
DEVELOPER: Cassco Development
TENANT REPRESENTATIVES: Jack Breard and Amy MacLaren of CBRE | UCR.
DETAILS: With its existing lease at Ridgmar Mall set to expire, the luxury retailer opted to relocate to this new 270-acre mixed-use project along the Trinity River in Fort Worth.
3. WHOLE FOODS
SIZE: 40,000 s.f. at CityLine in Richardson
DEVELOPER: Regency Centers
DETAILS: The grocery store will anchor the first 81,000 s.f. phase of CityLine Market, a retail center located within CityLine at Plano and Renner roads.
4. LA FITNESS
SIZE: 38,000 s.f. at Frisco Market Center
TENANT REPS: John Zikos and Jonathan Cooper of Venture Commercial Real Estate, and Walt Brown and Tim Dollander of Diversified Partners
LANDLORD: Hermansen Land Development, represented by Darrell Hernandez of UCR
DETAILS: The company will build a new facility within Frisco Market Center, a 100-acre development at the northwest corner of Main Street and the Dallas North Tollway in Frisco
5. HENNES & MAURITZ
SIZE: 31,000 s.f. at Sundance Square in Fort Worth
LANDLORD: Sundance Square, represented in-house by Bill Booker Jr.
DETAILS: This will be the seventh North Texas store for H&M, one of the world’s largest fashion retailers.